ExodusPoint's Remarkable Journey in 2025: Michael Gelband's $11 Billion Hedge Fund Triumphs

Upon its inception seven years ago, the expectations for ExodusPoint Capital Management soared. Eventually, those high hopes are being vindicated.

Acknowledged as the most significant launch the industry had ever seen back in 2018, this $11 billion hedge fund owes its origins to Michael Gelband's impressive tenure. His leadership within Millennium's fixed-income department was instrumental, as he relayed achieving approximately $7 billion in trading revenues during his time there. Investors were quick to act as Gelband’s new venture began with an astounding $8.5 billion to manage right out of the gate. Despite an initial struggle to deploy resources effectively and establish a robust infrastructure, the firm — co-founded by ex-Millennium equities expert Hyung Lee — experienced inevitable comparisons to industry giants like Ken Griffin's Citadel.

Fast forward seven years to 2025, the New York-based hedge fund is redefining its narrative. Outshining its competitors over the past year, the fund achieved a 9% rise including a 1.8% bump in June. Since July 2024, ExodusPoint marked a significant return exceeding 18%.

An insider acquainted with the firm's inner workings created a roadmap of success, though not permitted to openly discuss the strategies. In a roller-coaster equity market, their focus on fixed-income investments offers a stable footing. Approximately three-quarters of the firm's risk centers around fixed-income portfolios, an area where Gelband shines, though he does not personally manage portfolios. Jon Hoffman, once a Lehman Brothers collaborator, is recognized for the firm's prominent basis-trade execution.

Leadership and Strategic Maneuvers

Following Hyung Lee’s departure in 2024 to assume an advisory role from Puerto Rico, Gelband assumed sole responsibility as Chief Investment Officer. Recruits in 2023, who were formerly under Lee's leadership, are now pivotal. Among them, Adam Galeon manages long-short equities, and Michael Lapsa oversees systematic tactics. Meanwhile, Peter McConnon, who once headed Balyasny's macro operations in London, joined to enhance fixed-income and macro strategies.

Veterans like Lee and prior chief risk manager Dev Joneja have switched to advisory capacities. Nonetheless, Garrett Berg, a founding team member now elevated to President and COO, alongside Kunal Kumar, who joined in 2023 as Chief Risk Officer, have played indispensable roles in steering progress across both investment and operational facets.

Financial Adjustments and Workforce Optimization

A pivotal policy shift involves amending performance fees to only apply when returns outpace a Treasury bill, effectively lowering fee percentages and increasing net gains.

In a conscious effort to balance growth and efficiency, ExodusPoint reduced its workforce slightly since 2022, contrary to the surge seen among other multi-strategy funds, as shown by data from Old Well Labs. As of last year, the team comprised about 650 individuals, down from 688.

Post acquiring $1 billion in fresh capital in 2023, the firm has sealed off from new investments and is disinclined to extend its reach into new domains such as commodities or private credit.